Gold & Silver Are Stabilizing After the 'Trump Shock'
There was an irrational knee-jerk reaction to sell gold and silver after Trump won the presidential election, but they are now stabilizing and setting up for a continuation of their prior uptrend.
Last week saw relatively quiet, low-volume trading across gold, silver, and other financial markets, largely due to the Thanksgiving holiday in the United States. The week began with gold and silver pulling back, partly on news of hedge fund manager Scott Bessent—who happens to be a fellow gold bug—being nominated by President-elect Donald Trump for Treasury Secretary. Additional pressure came from reports of a cease-fire between Israel and Hezbollah. However, when the cease-fire was almost immediately violated and the U.S. dollar and bond yields finally retreated after their relentless rise, gold and silver rebounded. Overall, the gold and silver are showing signs of stabilizing after the "Trump Shock" a month ago, positioning them for a resumption of their prior uptrend soon.
Gold has recovered roughly half of the losses incurred during the post-election sell-off following Trump's victory—a reaction I believe was irrational and overblown. Despite that setback, gold remains in a confirmed uptrend and holds a strong technical position. Currently, it appears to be entering another consolidation phase or trading range, building momentum for its next upward move. Over the past year, gold's bull market has shown healthy, orderly growth, rising in a stair-step pattern from one consolidation to the next. This current phase seems to be following the same constructive pattern, reinforcing my optimism. I remain confident that gold is on track to reach $3,000 soon, potentially following the conclusion of this consolidation.
